Sonoma Pharmaceuticals, Inc. Annual report pursuant to Section 13 and 15(d)

13. Stock-Based Compensation (Tables)

12 Months Ended

Mar. 31, 2013

Options and restricted stock units outstanding at March 31, 2013 under the various plans is as follows (in thousands):

Plan	Total Number of Options and Restricted Stock Units Outstanding in Plan
1999 Plan		1
2000 Plan		–
2003 Plan		21
2004 Plan		66
2006 Plan		887
2011 Plan		–
		975

A summary of activity under all option plans for the years ended March 31, 2013 and 2012 is presented below (in thousands, except per share data):

	Number of Shares			Weighted- Average Exercise Price		Weighted- Average Contractual Term		Aggregate Intrinsic Value
Outstanding at March 31, 2011		628			20.72
Options granted		310			11.20
Options exercised		(19	)		2.87
Options forfeited or expired		(24	)		32.27
Outstanding at March 31, 2012		895			16.52
Options granted		124			6.41
Options exercised		(10	)		5.53
Options forfeited or expired		(34	)		24.38
Outstanding at March 31, 2013		975		$	15.08		6.49	$	16
Exercisable at March 31, 2013		805		$	16.32		6.00	$	16
Options available for grant as of March 31, 2013		951

Employee stock-based compensation expense is as follows (in thousands, except per share amounts):

	Employee Stock-based Compensation for the Year Ended March 31, 2013		Employee Stock-based Compensation for the Year Ended March 31, 2012
Cost of revenues	$	132	$	113
Research and development		231		278
Selling, general and administrative		791		1,780
Total stock-based compensation	$	1,154	$	2,171

The fair value of employee stock options was estimated using the following weighted-average assumptions:

	Year Ended March 31,
	2013		2012
Fair value of common stock on date of grant	$	6.41	$	11.22
Expected Term		5.80 yrs		5.75 yrs
Risk-free interest rate		0.72%		1.27%
Dividend yield		0.00%		0.00%
Volatility		88.0%		83.5%